Which of the Following Best Describes an Attractive Niche

question 40

Multiple Choice

Which of the following best describes an attractive niche?

• A) The niche has diminished in size and growth.
• B) The customers generally have smaller amounts of income.
• C) The customers will not pay a premium to the firm that satisfies their needs.
• D) The niche attracts several competitors in the same category.
• E) The customers in the niche have a distinct set of needs.

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Definitions:

Annually Compounded

A method of calculating interest where the interest is added to the principal sum once a year, resulting in interest on interest.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting the true value as agreed upon by a willing buyer and seller.

RRSP

A Registered Retirement Savings Plan, a Canadian investment account for holding savings and investment assets, with certain tax advantages.

Compounded Annually

Interest calculated once a year on the initial principal and the accumulated interest of previous periods of a deposit or loan.